Pakistan Issues Its First Green Sukuk to Fund Climate Action

In a historic move, Pakistan’s Federal Finance Minister Muhammad Aurangzeb has announced the issuance of the country’s first-ever Green Sukuk bond, aimed at supporting environmentally sustainable development.

In a video message to the Pakistan Stock Exchange (PSX), which closed at a record high, the minister praised investor confidence and economic reforms. He emphasized the Green Sukuk as a bold step toward fighting climate change—one of the most pressing threats to Pakistan’s future.

Aurangzeb shared that discussions with global investors in Washington and London reflect growing satisfaction with Pakistan’s improving economic fundamentals, including rising foreign reserves and better inflation control. He also confirmed that budget planning for FY 2025–26 is underway with contributions from diverse stakeholders.

The minister proposed learning from Malaysia’s model of green financing, while confirming Pakistan’s efforts to secure international climate funding. He further announced that Pakistan’s first Panda Bond will be floated in Chinese markets by June 2025, aiming to raise $200 million—signaling deeper financial cooperation with China.

This dual strategy—Green Sukuk and Panda Bond—highlights Pakistan’s focus on sustainable, export-led economic growth.